Icesaver introducing ISA from tomorrow

polomint_2

You can pay into an Isa as and when you please (though some Isas have a minimum opening deposit) up to a maximum of £3000 this year (this increases slightly next tax year). No tax is taken off so all your money (i.e intrest) goes in to tha account. As for maxi and minis...minis imo are safest and maxis are getting into shares which i dont have a clue about so someone more advanced will have to answer that part of your question. There is an up to date list on best Isas and all you need to know on here look under savings. Ill try and find the link though i bet someone beats me to it...lol..

polomint_2

I tried to post link couldnt get it to work

masonic

Melodyx wrote: »

Also can you have a maxi and a mini one or do you have to choose? (I see Icesave only do the Mini one) - If so, is there a list of the best performing maxi ISAs? Last question, how do you get the tax back or is that included in the 6.1% rate?

Best Cash ISAs

You cannot subscribe to both a mini and maxi ISA in the same tax year. But, as of April there will be no such thing as mini and maxi ISAs. Maxi ISAs generally did not give a very good deal for cash deposits and were generally used by those people wishing to invest their whole ISA allowance in stocks & shares.

rob5ta

can you pay in on a monthly basis or does it have to be a lump sum?

You can pay on a monthly basis, or a lump sum. Either way if you are opening a new cash ISA, the amount you can invest cannot exceed £3000 this tax year (2007/2008), and £3600 in the coming tax year (2008/2009), and then £3600 in every subsequent tax year (unless the goverment change the max amounts)

Each cash ISA is different. Icesave for example requires a minimum investment of £1000. Some can be opened with £10. Others you can get a fixed interest rate for a certain period. It is really whatever suits your situation so it is always best to shop around and read the T&C's carefully!

The Icesave ISA for me is a no brainer, as my savings account is with them so i can now wire money straight from my stooze pot straight into my Icesave ISA :T (I'm a stoozer:D )

how do you get the tax back or is that included in the 6.1% rate?

The whole point behind an ISA is the goverments way of trying to get this wonderful nation to save some cash for a rainy day, so ISA's are exempt from tax. THe 6.10% that Icesave offer is tax free.

carbonmonoxide

I e-mailed Icesave to find out how long deposits would take to clear with them and they told me it can take 7 days?!? That would mean I am losing up to 7 days of interest, as the money would leave the bank straight away. They could not tell me how long withdrawals to take to clear into my bank.

Although Icesave has has a great rate I am wondering if I'm better of sticking my my current ISA which is linked to my current account as deposits/withdrawals are instant - I'm not losing out on interest and I can access my money the day I want it.

Melodyx

We've got an offset mortgage account at Intelligent Finance who offer ISAs at a slightly lower rate than Icesave, but my savings will be offset against my mortgate - Anyone any idea shich ISA would be better for me?

ryandj

The icesave ISA has the option for monthly, or annual interest to be paid.

If I start off with 3k in the account, will the interest be the same whether its monthly or annually? Or would i earn more interest one way or another?

sloughflint

carbonmonoxide wrote: »

I e-mailed Icesave to find out how long deposits would take to clear with them and they told me it can take 7 days?!? That would mean I am losing up to 7 days of interest, as the money would leave the bank straight away. They could not tell me how long withdrawals to take to clear into my bank.

Although Icesave has has a great rate I am wondering if I'm better of sticking my my current ISA which is linked to my current account as deposits/withdrawals are instant - I'm not losing out on interest and I can access my money the day I want it.

I can't be sure about this because it's a new product but if the ISA is treated the same way as the savings accounts, although funds take 7 days to clear, they earn interest immediately. So don't be too put off.

sloughflint

ryandj wrote: »

The icesave ISA has the option for monthly, or annual interest to be paid.

If I start off with 3k in the account, will the interest be the same whether its monthly or annually? Or would i earn more interest one way or another?

The AER is the same so it would make no difference. Interest calculated daily.

CannyJock

Melodyx wrote: »

We've got an offset mortgage account at Intelligent Finance who offer ISAs at a slightly lower rate than Icesave, but my savings will be offset against my mortgate - Anyone any idea shich ISA would be better for me?

Assuming your mortgage interest rate is greater than the difference between the two ISA rates, wouldn't it be the offset option?

Definite that the ISA will earn interest at the same time as being offset? It's not excluded from the offset calc?